Trucking firm seeks investors

BDO Stoy Hayward is advising on options for Eddie Stobart

By Ben Harrington

12:01AM GMT 28 Feb 2007

Eddie Stobart, Britain's best-loved trucking company, could be about to bring in new investors. Any deal will be watched closely by the legion of truck-spotters, who acknowledge the distinctive green and gold lorries on Britain's motorways.

The company, still partly in family hands, could be valued in excess of £100m.

WA Developments International, the owner of Eddie Stobart, has hired corporate finance group BDO Stoy Hayward to advise on strategic options, which could lead to the sale of some Eddie Stobart share capital.

One insider said: "We are looking at options for the business so that it can be taken forward."

Information memoranda have been sent to prospective buyers and an auction process is in the first round. The company, which is forecast to generate pre-tax profits of £8m in 2007, could fetch between £100m and £150m. Several private equity firms have expressed interest.

The company was founded by Edward Stobart in 1970 as an offshoot to his father's agricultural business. It now has a fleet of 800 trucks, 27 depots and a turnover of more than £140m, and is one of Cumbria's biggest companies. Famously, all the drivers have to wear the company uniform of a green shirt and tie.

It is not clear how much of the turnover is generated by sales of memorabilia to fans. Everything from Eddie Stobart slippers to duvet covers can be bought on the many websites dedicated to the trucking company.

Eddie Stobart shocked trucking fans when he decided to sell the business to WA Developments in 2003 and retire to spend more time with his family.

However, there is still a family connection. William Stobart, Eddie's younger brother, is a co-owner of WA Developments alongside Andrew Tinkler, a former joiner and cabinet maker who used to work for the company as a fitter. Mr Tinkler and William Stobart are brothers-in-law.

While the lorries, and their neatly-dressed drivers, attract most attention, WA Developments owns many other businesses, including Carlisle Airport, a railway civil engineering business, a retail company that owns the franchise to sell Mothercare products in the Ukraine and a property company. All of these are being examined by BDO Stoy Hayward as part of the strategic review. It is understood the management team want to remain with the business if a deal takes place.